Read More

"The bank is a hugely exciting development for Scotland and I look forward to working with Benny Higgins to establish it as the cornerstone financial institution in Scotland's economic architecture, promoting and providing finance to help achieve our economic ambitions," the First Minister said.

The new bank is being set up to act as a catalyst to help grow Scotland's economy. The plans drawn up by Higgins state it should be supported by long-term capitalisation of at least £2bn over the first 10 years - with the First Minister having earmarked £500m over the next three years as a "substantial down-payment" for this.

Higgins will now play a leading role in the development of the new bank, advising Sturgeon and other ministers, and also working to build support amongst civic and business organisations.

Sturgeon said the appointment of the former Tesco Bank boss would "see him build on the invaluable work he did to develop the implementation plan for the bank, recognising the unique skills and insights he will bring to the delivery programme".

Read More

She added: "Benny brings the extensive financial sector experience this project requires combined with a clear commitment to deliver a mission-driven investment bank that can help transform our economy.

"An early priority will be to bring together stakeholders from across the public and private sectors to inform the final proposals that will be included in legislation to establish Scotland's National Investment Bank."

Higgins said: "The creation of The Scottish National Investment Bank will be an essential element to underpin the future economic well-being of our country.

"Hard yards lie ahead, but I relish the challenge that the First Minister has set us. We will build an institution that is fit for purpose and, in particular, one that has the right values."